ED arrests Yes Bank founder Rana; CBI’s economic wing to take his custody
Yes Bank founder and former Managing Director Rana Kapoor was arrested by Enforcement Directorate (ED) on Sunday. He was presented before a Mumbai court and after the interrogation was sent to ED’s custody till Wednesday.
The ED told the court that of the alleged crime amounted to Rs 4,300 crore and that Kapoor had refused to cooperate with the investigation.
The ED alleged that Yes Bank had bought Rs 3,700 crore worth debentures of bankrupt Dewan Housing and Finance Ltd (DHFL), which had granted Rs 600 crore loan to another company called Doit. Doit is owned by Rana Kapoor's daughters - Roshni, Radha, and Rakhee Kapoor Tandon.
The ED told the court that the loan to Doit was extended against collateral of Rs 700 crore, while the actual value of the assets is just Rs 40 crore. Kapoor’s lawyer said that Doit’s debentures were rated AAA-rated and that ‘it is servicing the debt on time’.
The ED also searched the residences of 62-year-old Kapoor and his daughter Roshni in Mumbai and Delhi on Sunday.
Sources have revealed that officials from the Central Bureau of Investigation’s (CBI) Economic Wing have also left for Mumbai to conduct searches at Kapoor’s and his daughter’s properties and seek Kapoor’s custody.